Emma Technology‘s performance has increased significantly and then equity incentives have been thrown away. Many consumer quality complaints may become development obstacles
“Harbor Commercial Observation” Wang Xinyi and Li Lei
Equity incentives can often play a role in boosting morale and investor confidence. In this sense, Emma Technology (603529.SH) is also optimistic about the company’s development prospects.
This is indeed reflected in the performance level. However, in another dimension, for consumers, the complaints of Emma Technology are still high, and the company still needs continuous improvement in terms of consumer “bad reviews” and after-sales service.
01
Excellent performance last year and equity incentives
On March 20, Emma Technology announced the 2023 stock option incentive plan (draft). The number of stock options to be granted in the incentive plan is 4.812 million, accounting for about 0.84% of the company’s total share capital of 574,700,004 shares when the draft incentive plan was announced. Incentive plans do not set reservations.
It is reported that the exercise price of stock options granted by the incentive plan is 48.07 yuan per share, and the total number of incentive objects granted by the incentive plan is 328, who worked in the company (including branches and subsidiaries, the same below) when the company announced the incentive plan middle-level managers and core technical (business) backbones.
The validity period of the incentive plan is from the date when the stock options are granted to the date when all the stock options granted to the incentive objects are exercised or canceled, and the longest period shall not exceed 48 months.
Emma Technology said that this incentive plan has set a strict company-level goal of 20% compound growth in the next three years for the realization of future incentive rights; Performance appraisal can make a more accurate and comprehensive comprehensive evaluation of the work performance of incentive objects. In addition, in the allocation of incentive equity shares, we also adhere to the principle of equal incentives and contributions, effectively unify the interests of incentive targets and the company and the company’s shareholders, and promote the company’s long-term and stable development through the realization of incentive goals.
A week ago, on March 12, Emma Technology released its 2022 performance report. The company achieved revenue of 20.802 billion yuan, a year-on-year increase of 35.09%; the net profit attributable to shareholders of listed companies was 1.845 billion yuan, a year-on-year increase of 177.89%; The net profit of shareholders of listed companies after deducting non-recurring gains and losses was 1.76 billion yuan, a year-on-year increase of 185.61%; basic earnings per share were 3.24 yuan.
Emma Technology believes that there are three main reasons for the company’s better operating results in 2022: First, the improvement of product strength. Based on the company’s in-depth insight into consumers, the new products launched through forward development are widely welcomed by the market; The brand power has been significantly improved. Good products, good services and diversified brand promotion have created a good reputation among users. Third, the competitive advantage of channel power has become prominent, and the number of stores has continued to grow.
Compared with the listed code name Emma Technology, the public is most familiar with the numerous Emma electric vehicles on the streets. Founded in 1999, it entered the field of electric vehicles in 2004. According to the official website, as of July 2022, the company has more than 2,000 dealers.
According to data from the China Bicycle Association, in 2021, Emma Technology will have a market share of 16.8% in the domestic electric two-wheeler market, ranking second only to Yadea Holdings’ 27.9%. 4.6% and 2.1%, respectively.
According to market sources, the 2022 Emma electric carSales9 million vehicles. In the field of electric vehicles in the Red Sea where market competition is fierce, the marketing strategy of Emma electric vehicles is undoubtedly successful. It has been 14 years since they hired Jay Chou, the king of discourse and pop, in 2009.
02
There are many complaints, and the response rate and after-sales service need to be improved urgently
Although the business continues to be successful, the recent consumer complaints of Emma electric vehicles have attracted the attention of the outside world.
According to a number of market sources, a consumer stated on the black cat complaint platform on March 4 that the electric car he bought at Emma’s flagship store on the evening of February 28, 2023, went out on March 3. Bad on the road. After contacting the after-sales inspection, it was found that the motor was broken and the motor needed to be replaced. After contacting the store, the store’s sales attitude was bad, and the car owner asked for a refund and the store did not agree. Therefore, the consumer initiated a complaint, and the amount involved was 5,500 yuan.
The consumer further stated at 16:40 on March 4 that at present, no one from the Emma official or the store has come forward to negotiate this matter. The car broke down on the side of the road. If you contact the official customer service, you can’t get a refund.
“Harbor Business Observer” inquired about the black cat’s complaint and found that as of now, the complaint has not been completed, and the consumer also made a supplement on March 5.
The electric car broke down in just three days. If the complaint is true, it will obviously have an impact on the quality image and potential purchasing power of Emma electric cars.
On the black cat complaint, it is not uncommon for Emma electric vehicles to be complained due to quality problems. On February 27 this year, a consumer complained that the Emma Electric Vehicle Shangbi store in Gaokai District, Handan City (343 meters west of Shangbi Shopping Center) sold cars with quality problems. 1. After turning on the headlights of the electric vehicle, the light is obviously asymmetrical to one side, and the light does not shine on the ground, but shines straight ahead (similar to the high beam of a car), and it will shake the eyes of other electric vehicle owners coming towards you. There are potential safety hazards; 2. There are large gaps in the covers on both sides of the rear wheels of the electric vehicle, which poses potential safety hazards; 3. After explaining the problem to the store, they have a bad attitude and will not deal with it.
Also up to now, the complaint has not been completed, and consumers have made two supplements to this.
As of March 20, there were 768 complaints of Emma electric vehicles on the black cat complaint, 458 of which have been completed, and 37 of nearly 30 complaints, of which 2 have been completed. Most consumers’ complaints about Emma’s electric vehicles include shipping the wrong goods and needing to bear the freight, delaying time and not assisting in licensing, batteries not being repaired and replaced, outstanding quality problems, etc.
On the whole, on the black cat complaint platform, the Emma electric vehicle that has settled in it, whether it is the complaint completion rate or the response rate, is generally not high, and there is a great room for improvement. “Harbor Business Observer” contacted Emma Electric Vehicle for complaints and after-sales issues, but failed to receive a relevant response.
Song Qinghui, a famous economist, told Harbor Business Observer that, as a well-known brand well-known to consumers, Emma electric vehicles have the obligation and must respond to consumer demands in a timely manner. If the quality is defective, the company should strictly implement the Three Guarantees policy and Consumer Rights Protection Law: If there is a slow response or delay in responding to consumers, consumers can also report to the Consumers Association in a timely manner, and collect relevant information to sue. “In general, from the perspective of brand reputation and value, any behavior that ignores the rights and interests of consumers may have a long-term and significant negative impact on the company.” (produced by Gangwan Finance)
Original title: Emma Technology’s performance has increased greatly and then equity incentives have been thrown away, and many consumer quality complaints may become development obstacles